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Make an early start with income cover

Graham Harvey
Graham Harvey Managing Director Individual Friends Provident

Success comes to those who prepare well and put in the effort. Targeting customers with income protection when they are younger can be an advantage for advisers and clients.

It means customers’ finances are protected for longer and they may also see the benefits of further protection products in the future when they buy their first property or start a family.

Many young people leave university with debts including overdrafts, student loans, credit cards and even bank loans. They continue to live with their parents for longer and can face financial worries earlier on in life.

One figure that sticks in my head is that almost a third of men and a fifth of women aged between 20 and 34 live with their parents.

When young people start their first job, I doubt protection is at the front of their minds. But anyone who earns an income needs to protect it as it pays for their lifestyle and debts.

This is also an appropriate time to take out IP because premiums are likely to be at their lowest at this age and they still have their whole future ahead of them.

If the client becomes unable to earn an income due to illness or injury, their lifestyle and payment of debts would be affected.

If advisers can sell the need for protection to younger customers and have regular reviews, they are likely to be customers for life.

The saying ’the early bird catches the worm’ springs to mind. Making an early start could mean better preparation for the future success of advisers’ businesses and clients’ financial protection.

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